Permitted disparity allocation Sample Clauses
Permitted disparity allocation. The discretionary Employer Contribution under AA §6-2 will be allocated under the two-step method (as defined in Section 3.02(a)(1)(ii)(A) of the Plan), using the Taxable Wage Base (as defined in Section 1.132 of the Plan) as the Integration Level. To modify these default rules, complete the appropriate provision(s) below:
Permitted disparity allocation. The discretionary Employer Contribution under AA §6-2 will be allocated under the two-step method (as defined in Section 3.02(a)(1)(ii)(A) of the Plan), using the Taxable Wage Base (as defined in Section 1.132 of the Plan) as the Integration Level. To modify these default rules, complete the appropriate provision(s) below:
🞎 (1) Integration Level. Instead of the Taxable Wage Base, the Integration Level is: 🞎 (i) % of the Taxable Wage Base, increased (but not above the Taxable Wage Base) to the next higher: 🞎 (A) N/A 🞎 (B) $1 🞎 (C) $100 🞎 (D) $1,000 🞎 (ii) $ (not to exceed the Taxable Wage Base) 🞎 (iii) 20% of the Taxable Wage Base [Note: See Section 3.02(a)(1)(ii) of the Plan for rules regarding the Maximum Disparity Rate that may be used where an Integration Level other than the Taxable Wage Base is selected.] 🞎 (2) Describe special rules for applying permitted disparity allocation formula: [Note: Any special rules must relate solely to applying the permitted disparity formula.]
Permitted disparity allocation. For an integrated Profit Sharing Plan or 401(k) Profit Sharing Plan allocation or a Money Purchase Plan which is integrated by allocation:
(i) Subject to the "overall permitted disparity limits," the Employer's contribution shall be allocated to each Participant's Account in a dollar amount equal to 5.7% of the sum of each Participant's Compensation plus Excess Compensation. If the Employer does not contribute such amount for all Participants, each Participant will be allocated a share of the contribution in the same proportion that each such Participant's Compensation plus Excess Compensation for the Plan Year bears to the total Compensation plus the total Excess Compensation of all Participants for that year. However, in the case of any Participant who has exceeded the "cumulative permitted disparity limit," the allocation set forth in this paragraph shall be based on such Participant's Compensation rather than Compensation plus Excess Compensation. Regardless of the preceding, 4.3% shall be substituted for 5.7% above if Excess Compensation is based on more than 20% and less than or equal to 80% of the Taxable Wage Base. If Excess Compensation is based on less than 100% and more than 80% of the Taxable Wage Base, then 5.4% shall be substituted for 5.7% above.
(ii) The balance of the Employer's contribution over the amount allocated above, if any, shall be allocated to each Participant's Account in the same proportion that each such Participant's Compensation for the Plan Year bears to the total Compensation of all Participants for such year.
(iii) Notwithstanding the preceding provisions, a Participant shall only be eligible to share in the allocations of the Employer's contribution for the year if the Participant is an Eligible Employee at any time during the year and the conditions set forth in the Adoption Agreement and Section 3.5(h) are satisfied, unless a top-heavy contribution is required pursuant to Section 4.3(f). If no election is made in the Adoption Agreement, then a Participant shall be eligible to share in the allocation of the Employer's contribution for the year if the Participant completes more than five hundred (500) Hours of Service (or three (3) consecutive calendar months if the elapsed time method is chosen in the Adoption Agreement) during the Plan Year or is employed on the last day of the Plan Year.
(iv) The following "overall permitted disparity limits" (which consist of the "annual overall permitted disparity limit" and the "cu...
Permitted disparity allocation. The discretionary Employer Contribution under AA §6-2 will be allocated under the two-step method (as defined in Section 3.02(a)(1)(ii)(A) of the Plan), using the Taxable Wage Base (as defined in Section 1.132 of the Plan) as the Integration Level. To modify these default rules, complete the appropriate provision(s) below:
🞎 (1) Integration Level. Instead of the Taxable Wage Base, the Integration Level is: 🞎 (i) % of the Taxable Wage Base, increased (but not above the Taxable Wage Base) to the next higher: 🞎 (A) N/A 🞎 (B) $1 🞎 (C) $100 🞎 (D) $1,000 🞎 (ii) $ (not to exceed the Taxable Wage Base) 🞎 (iii) 20% of the Taxable Wage Base